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Percentage of Completion Method Widjaja Company is accounting for a long - term construction contract using the percentage - of - completion method. It is
Percentage of Completion Method Widjaja Company is accounting for a longterm construction contract using the percentageofcompletion method. It is a year contract that is currently in its second year. The latest estimates of total contract costs indicate that the contract will be completed at a profit to Widjaja Company. Answer the following questions in the Discussion Board: What theoretical justification is there for Widjaja Company's use of the percentageofcompletion method? How would progress billings be accounted for? Include the classification of progress billings in the Widjaja Company financial statements. How would the income recognized in the second year of the year contract be determined using the costtocost method of determining the percentage of completion? What would be the effect on earnings per share in the second year of the year contract of using the percentageofcompletion method instead of the completedcontract method? Discuss. Kieso, D E Weygandt, J J & Warfield, T D Intermediate accounting th ed Wiley.
Percentage of Completion Method
Widjaja Company is accounting for a longterm construction contract using the percentageofcompletion method. It is a year contract that is currently in its second year. The latest estimates of total contract costs indicate that the contract will be completed at a profit to Widjaja Company.
Answer the following questions in the Discussion Board:
What theoretical justification is there for Widjaja Company's use of the percentageofcompletion method?
How would progress billings be accounted for? Include the classification of progress billings in the Widjaja Company financial statements.
How would the income recognized in the second year of the year contract be determined using the costtocost method of determining the percentage of completion?
What would be the effect on earnings per share in the second year of the year contract of using the percentageofcompletion method instead of the completedcontract method? Discuss.
Kieso, D E Weygandt, J J & Warfield, T D Intermediate accounting th ed Wiley.
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